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A penny for your thoughts...A penny for your thoughts...
Cryogenix said: "Over the past few months (and looking back over my entire time trading) I’ve come to discover how significantly important charts are in determining where a stock is going. In a very old post here, I suggested that looking at something a stock did months or years ago was pointless, as it’s ancient history and had no real bearing on today’s events. I think I was wrong. With so many traders out there looking at the same charts, it’s become crystal clear that they (we) are the ones who create the trends and make history repeat itself (with the generosity of the Marker Maker, of course).
If a chart shows that every three months a stock hits 21.00 and then rebounds to 25.00, everyone will be more inclined to enter a position around the 21.00 mark in anticipation of riding it up to the usual level. Then others will see it rebounding and join in, which perpetuates the upward movement. Moreover, the MM, during the course of the day, will manipulate the stock up and down, to rattle nervous day traders and make some cash for himself, but when all is said in done, he will allow the trend to continue because it more or less guarantees him a certain volume of traders to shake up and make money off of. If he decides to stunt the trend, he risks losing his bread and butter because it may scare the vast majority away from that stock.
Another theory I’ve been playing with recently is, the chart is actually the indicator of when news will hit. Point in case, in looking at the chart of EEE a few days ago, there was something about it that screamed a big move was coming. The next morning, a fantastic PR hits and the thing starts making huge moves. This also happened with ONSM the other day. The other night the chart looked great for an upward movement, but since I had already posted about four new stocks that day, I figured another one would be overkill. The next day, a PR hit and the stock suddenly made a great upward movement. There are many examples I could cite of times when stocks I traded quietly suddenly had a PR just after I’ve concluded (from the chart) that something big was about to happen.
My point is, I believe that insiders and Market Makers (who have intimate, privileged information about companies) start buying into stocks prior to their news being released, which set up the chart to reflect when news is going to hit, good or bad. If we can astutely interpret the story of a stock’s chart, I believe we can ascertain when news is about to break, and be better prepared to enter or exit a position.
Just a theory…"
Woswill said: "Charts attract investors, which reflects in the PPS."
squarepusher said: "[QUOTE=Cryogenix]Over the past few months (and looking back over my entire time trading) I’ve come to discover how significantly important charts are in determining where a stock is going. In a very old post here, I suggested that looking at something a stock did months or years ago was pointless, as it’s ancient history and had no real bearing on today’s events. I think I was wrong. With so many traders out there looking at the same charts, it’s become crystal clear that they (we) are the ones who create the trends and make history repeat itself (with the generosity of the Marker Maker, of course).
If a chart shows that every three months a stock hits 21.00 and then rebounds to 25.00, everyone will be more inclined to enter a position around the 21.00 mark in anticipation of riding it up to the usual level. Then others will see it rebounding and join in, which perpetuates the upward movement. Moreover, the MM, during the course of the day, will manipulate the stock up and down, to rattle nervous day traders and make some cash for himself, but when all is said in done, he will allow the trend to continue because it more or less guarantees him a certain volume of traders to shake up and make money off of. If he decides to stunt the trend, he risks losing his bread and butter because it may scare the vast majority away from that stock.
Another theory I’ve been playing with recently is, the chart is actually the indicator of when news will hit. Point in case, in looking at the chart of EEE a few days ago, there was something about it that screamed a big move was coming. The next morning, a fantastic PR hits and the thing starts making huge moves. This also happened with ONSM the other day. The other night the chart looked great for an upward movement, but since I had already posted about four new stocks that day, I figured another one would be overkill. The next day, a PR hit and the stock suddenly made a great upward movement. There are many examples I could cite of times when stocks I traded quietly suddenly had a PR just after I’ve concluded (from the chart) that something big was about to happen.
My point is, I believe that insiders and Market Makers (who have intimate, privileged information about companies) start buying into stocks prior to their news being released, which set up the chart to reflect when news is going to hit, good or bad. If we can astutely interpret the story of a stock’s chart, I believe we can ascertain when news is about to break, and be better prepared to enter or exit a position.
Just a theory…[/QUOTE]
interesting theories i will take int0 consideration when evaluating stock charts.
also, insider transactions can be good signs as well as predictors of performance or news, upcoming."
Mav5x5 said: "[QUOTE=Cryogenix]Over the past few months (and looking back over my entire time trading) I’ve come to discover how significantly important charts are in determining where a stock is going. In a very old post here, I suggested that looking at something a stock did months or years ago was pointless, as it’s ancient history and had no real bearing on today’s events. I think I was wrong. With so many traders out there looking at the same charts, it’s become crystal clear that they (we) are the ones who create the trends and make history repeat itself (with the generosity of the Marker Maker, of course).
If a chart shows that every three months a stock hits 21.00 and then rebounds to 25.00, everyone will be more inclined to enter a position around the 21.00 mark in anticipation of riding it up to the usual level. Then others will see it rebounding and join in, which perpetuates the upward movement. Moreover, the MM, during the course of the day, will manipulate the stock up and down, to rattle nervous day traders and make some cash for himself, but when all is said in done, he will allow the trend to continue because it more or less guarantees him a certain volume of traders to shake up and make money off of. If he decides to stunt the trend, he risks losing his bread and butter because it may scare the vast majority away from that stock.
Another theory I’ve been playing with recently is, the chart is actually the indicator of when news will hit. Point in case, in looking at the chart of EEE a few days ago, there was something about it that screamed a big move was coming. The next morning, a fantastic PR hits and the thing starts making huge moves. This also happened with ONSM the other day. The other night the chart looked great for an upward movement, but since I had already posted about four new stocks that day, I figured another one would be overkill. The next day, a PR hit and the stock suddenly made a great upward movement. There are many examples I could cite of times when stocks I traded quietly suddenly had a PR just after I’ve concluded (from the chart) that something big was about to happen.
My point is, I believe that insiders and Market Makers (who have intimate, privileged information about companies) start buying into stocks prior to their news being released, which set up the chart to reflect when news is going to hit, good or bad. If we can astutely interpret the story of a stock’s chart, I believe we can ascertain when news is about to break, and be better prepared to enter or exit a position.
Just a theory…[/QUOTE]
Gotta agree with you, cryo. I've been playing bottom plays for a long time and I have seen over and over again plays come flying off lows when indicators are set. It may not always happen to the day that you think, but the charts WILL reset themselves. When they reach highly-oversold levels with many indicators, traders start paying attention to them and buying pressure can be created relatively easily. OTC stocks (especially pinkies) can be a bit of a different creature because dilution will not allow the pressure to really push a stock north. But, generally speaking, money can be made by finding these plays at the right time and watching daily for them to hit a bottom and turn. Nothing is guaranteed, but that is my experience anyway."
lil dickie said: "History repeats itself. Again and again."
Corey said: "The more pervasive that technology makes information, the more technical analysis becomes a self-fulfilling prophecy -- especially when you start to have computers that are automated to invest on these patterns sloshing about large amounts of cash.
Just don't let JAP hear you say it. I don't think he is a big proponent of the self-fulfilling prophecy theory, if I remember correctly."
Cryogenix said: "Now I'm convinced that, for the most part, how the trading day is (DOW -500 or +500) means very little to how a stock will trade (barring devastating news to that would affect the entire market and send stocks going extreme ways) because it all comes down to the MM completing the desired pattern before anything will happen.
If the remaining piece of a chart's pattern is to decline from 20.00 to 19.00, the MM will not permit it to go up under any circumstances, regardless of how much positive volume is flowing into it and regardless if the DOW is +500. Until the pattern is completed to the MM's satisfaction, trying to play the stock up is useless, so you might as well wait for the pattern to finish before getting in.
HEPH and CRTX are prime examples. Perfect patterns that need to go through a particular process and certain direction. CRTX is completing the second half of its batwing to 2.12, then it will start going up again. HEPH must finish it's mirror image of September before it will go up.
But those are simple patterns. If you can figure out the more complex ones the MM is planning to make, then you've got him! It's all about the shapes and patterns, not the trading day...
So, when you see buy after buy after buy of 1,000, 5000, 10,000 shares at 20.00 and it never moves up, then 100 shares is sold and drops it down a penny or two, that's an indicator the MM wants to create a certain pattern and will deter any climb. If the next piece of a pattern has the stock going from 19.00 to 25.00 (and it just climbed from 18.00), the MM may hold the price at 19.00 for a very long time, allowing many traders to get nervous and take the sure $1 gain, which is fine with him since all those traders are taking small money and will miss out on the big climb to follow.
Back to HEPH...you've got an obvious repeating pattern forming from September, so why would the MM make the same pattern if he knows others will know when to get in an make money? Because. :) Many traders will see it as a trap and bail as the price slowly declines, missing the big upward move. If the stock has negativity attached to it or possibly forthcoming (earnings, FDA approval, etc), then the second pattern could very well be a trap that has it tanking. However, in the case of HEPH, it has nothing but positive things happening, therefore the chart leans more toward a climb than decline.
Again...just some theories that seem to be fairly reliable."